Firms that have faced adverse shocks to their business activity can decide to either shed labour or hold on to their workforce, i.e.
Overview
Holding on: labour hoarding and firms’ expectations. Firms that have faced adverse shocks to their business activity can decide to either shed labour or hold on to their workforce, i.e. “hoard labour”. This choice can be related to expectations about the future business outlook, prices and costs. Evidence suggests that there is a clear link, in particular, between recent labour hoarding decisions taken by firms and their labour cost growth expectations. With regard to the outlook for pricing, firms that have experienced a deterioration in their ov
